Chip manufacturer Advanced Micro Devices (AMD) is preparing to cut up to 30 per cent of its workforce.
The struggling firm is expected to announce between 2,200 and 3,300 of its 11,100 staff could go after lower than expected sales and earnings forecasts.
It's thought the job losses will come from the AMD engineering and sales divisions as the company tries to cut costs. The rumours come days after the firm warned investors that its third quarter revenue is down 10 per cent compared with the previous quarter, far lower than the previously predicted one per cent.
"The lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment," the company said in a statement.
AMD could announce the job cuts as early as Thursday when it is due to give its Q3 results in a conference call. If the redundancies are made, they'll come a year after AMD cut its workforce by 10 per cent in an attempt to reduce operating costs.
It would represent the second round of job losses at the company since former Lenovo COO and President Rory Read joined as CEO in August last year.
Rumours of job losses at AMD haven't gone down well on the stock market, with shares in the chip maker dropping over 14 per cent from $3.20 to $2.74. AMD is refusing to comment on reports of redundancies.
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